The U.S. state of Illinois is currently weighing legislation which will allow residents to use cryptocurrencies to pay their taxes. This will be a great step in the cryptocurrencie world and a lot of people are looking forward for this.
In practice, the taxpayer would send cryptocurrency as a tax payment which the state department would then convert back into US dollars at ‘the prevailing rate within 24 hours’. The department then credits the taxpayer’s account with whatever value that may be.
The bill was first introduced to legislators on 16th February and was assigned on the 6th of march to the Revenue & Finance committee for consideration. Similar bills are being weighed by Arizona and Georgia which will also legalize Bitcoin as payment for tax. Both the Georgia and Arizona bill similarly outline the exchange from cryptocurrency into USD and subsequent crediting of the taxpayer’s account.
Currently, Arizona is closest to passing or scrapping the legislation, which could potentially affect how the other two are decided.
Could it be the Bitcoin Bank of the Future?
The news is likely to excite cryptocurrency investors, and it will come as a relief that some US states seem to be embracing cryptocurrency rather than rejecting it. And its understandable given an unpredictable year which has seen cryptocurrency crackdowns in countries such as China and South Korea, as well as closer to home in Texas.
It will defintely be interesting to see if everything will be allowed..
Let's keep on follow the news!
source: cryptocurrencynews.com
source picture: CoinTelegraph